Moneylenders Credit Bureau: 7 Things Borrowers Should Know

1. What is the Moneylenders Credit Bureau?

Firstly, the Moneylenders Credit Bureau (MLCB) is the central repository that houses all borrowers’ loans and repayment histories with licensed moneylenders. It enables licensed moneylenders in Singapore to evaluate borrowers’ creditworthiness and assist them in advising loans that are affordable to borrowers.

The Ministry of Law passed regulations in 2016 that allow it to license and monitor credit bureaus that gather customers’ credit information from all of Singapore’s licensed money lenders.

This ensures the smooth operation of licensed credit bureaus and safeguards the consumers’ interests by preserving the confidentiality, security, and integrity of the data collected from the consumers.

From July 2021, Credit Bureau (Singapore) has been designated by the Ministry of Law as the operator of the Moneylenders Credit Bureau.

2. Functions of the Moneylenders Credit Bureau

Secondly, every licensed moneylender in Singapore is an approved member of the Moneylenders Credit Bureau. As such, they are required to keep the MLCB informed about borrowers’ loan details regularly. This would enable the Loan Information Report to be generated on-demand, detailing all of the borrower’s existing loans with all licensed moneylenders in Singapore.

The Loan Information Report includes information on:

1. The loan the borrower has undertaken, the total outstanding principal amount, and the total amount of money owed.
2. The list of all current personal loans the borrower has with licensed moneylenders in Singapore, as well as the status of each loan’s repayment.
3. Default records (e.g. failing to pay your loans on time, or at all), if applicable.

No information from a borrower’s Loan Information Report can be shared with anybody else. If you were to obtain a personal loan from a licensed moneylender in Singapore, you will not be required to purchase the Loan Information Report as this will be done by the moneylenders.

3. Why must moneylenders retrieve your Loan Information Report?

Third, licensed moneylenders in Singapore must ensure that they have all the relevant information needed to conduct a credit risk assessment before approving your personal loan application.

Information on your Loan Information Report determines how well you can pay off your personal loans. If you haven’t been consistent in your loan repayment, moneylenders will identify that you are a high-risk borrower and may reject your request during the initial application stage.

However, if you’re consistently making on-time payments, your report will reflect well on you. This means that your borrowing limit will increase, and moneylenders would be more likely to offer you more money than your previous loan!

Additionally, there is a maximum amount of unsecured loans that you can take on across all licensed moneylenders in Singapore. This is known as the loan cap and is dependent on the borrower’s annual income.

With the Loan Information Report from the Moneylenders Credit Bureau, licensed moneylenders in Singapore are able to know if a particular borrower’s total outstanding loan is still within the limits of the borrowing cap set by the Ministry of Law.

For example, if you’re a Singaporean or Permanent Resident with an annual income of S$15,000, the maximum amount you can borrow across all licensed moneylenders is S$3,000. If you’ve exceeded the loan cap, licensed moneylenders will have the right to reject your personal loan application.

With the Moneylenders Credit Bureau, the licensed moneylenders can know if the borrower’s total outstanding loan already exceeds the borrowing cap set by the Ministry of Law. Refer to this link.

4. Who can see your loan information reports?

Next up, to protect your credit information from misappropriation, only authorised parties may request and receive information from the Moneylenders Credit Bureau. The data on the credit reports obtained can only be accessed by the following four parties:

1. You, as a borrower
2. Licensed Moneylenders in Singapore
3. Ministry of Law
4. The Registry of Moneylenders

When applying for loans with licensed moneylenders in Singapore, the credit report will be used to check for any active loans along with your default records. This will allow licensed moneylenders to offer you a loan plan that is best suited to your affordability.

The Ministry of Law and the Registry of Moneylenders have access to the data provided by the Moneylenders Credit Bureau stored in their systems.

For a small fee, you can request a copy of your credit report at any time, even if you are not looking to apply for loans.

5. Ways to obtain a Moneylenders Credit Bureau report

The fifth thing you should know is that a copy of your credit report may be requested online or at any of the two following places:

Note: Loan Information Reports purchased by walk-ins at the Moneylenders Credit Bureau Office are only payable by cash. Each report costs S$0.50 (including GST).

6. What can you do to improve your creditworthiness?

The sixth thing you should know is that your ability to pay off your debts on time is one of the most important factors that could either make or break your creditworthiness. To do that, make a list of the personal loans, business loans, or any credit card payments that you have.

It’ll enable you to see who you owe and the total amount you owe. Setting up automatic payments (e.g. GIRO payments) for the minimum amount due each month can help you stay on top of your payments.

By staying on top of your loan repayments, your creditworthiness is enhanced. This puts you in a better position when you’re applying for a new personal loan from a licensed moneylender. Improving your monthly income boosts your creditworthiness as well, indicating that you have the financial capability to repay the loans you take on.

7. Which organisations does the Moneylenders Credit Bureau work with?

One aim of the Moneylenders Credit Bureau is to help borrowers achieve better financial health. It does this by granting borrowers assistance in understanding their loan information report. Additionally, the Moneylenders Credit Bureau works closely with the Credit Association of Singapore and Credit Counselling Singapore to educate the general public.

You might know the Credit Association of Singapore by its former name better, the Moneylenders’ Association of Singapore. This non-profit trade association officially represents all licensed moneylenders in Singapore and supports them. The organisation also raises awareness about regulated moneylending and educates the public about it.

One reputable licensed moneylender in Singapore you should know about is MM Credit, which has been operating since 2013. Applying for a loan with us is easy – simply fill in and submit the Online Loan Form on our homepage and our experienced and friendly loan officers will reach out to you with a personalised loan quote.